REPORT TO THE CITY COUNCIL
May 25, 2017
FROM: BRIAN R. MARSHALL, Director
Department of Transportation
BY: JIM SCHAAD, Assistant Director
Department of Transportation
DUANE MEYERS, Fleet Manager
Department of Transportation/Fleet Management Division
CLIFF TRAUGH, Sr. Management Analyst
Department of Transportation/Fleet Management Division
SUBJECT
Title
Award a sole source purchase contract in the amount of $448,023.90 to NO-DES, Inc., for the purchase of one Neutral Output Discharge Elimination System water main flushing truck (Requires 5 votes)
Body
RECOMMENDATION
Staff recommends Council award a sole source purchase contract in the amount of $448,023.90 for the purchase of one Neutral Output Discharge Elimination System (NO-DES) truck.
EXECUTIVE SUMMARY
The Water Division, under the Department of Public Utilities, wishes to purchase a NO-DES water main flushing system over the formal bid limit from a "sole source" without competitive bidding.
The Water Division endeavors to maintain a good public perception of “water conservation,” and this NO-DES unit will help achieve this goal. The NO-DES system is unique in its ability to flush lines and return potable water back into the system with minimal loss. This unit will save 133 million gallons of water annually that would otherwise be lost to traditional open hydrant flushing. Both the Fleet Management and Water Divisions have researched alternative products and have come to the conclusion that this is the only system of its kind and is the best value over the other possible options.
Key benefits include saving money, conserving water by returning potable water back into the system, eliminating National Pollutant Discharge Elimination System (NPDES) fees, and preventing damage common to conventional water main flushing.
BACKGROUND
The Water Division over the past five years has experienced an increased need to flush the main water lines and hydrants throughout the 1,800 miles of pipe running throughout the City. The traditional method to accomplish this job was to open the hydrant and let the water flow down the storm drain. This method results in the loss of thousands of gallons per flush and gives the community the impression the City is not being conscientious with water resources. This increased need combined with the growing concerns regarding water usage has led the Water Division to seek out a solution.
To effectively flush the entire City water system annually, as per best practice, two NO-DES units will be needed. The first of these units was purchased last year and has been in service for approximately three months. This request will be for the second needed unit.
The NO-DES System offers the following benefits over traditional flushing methods:
• Eliminates most of the water waste associated with conventional flushing
• Removes particulates, bio-film, iron, and manganese
• Elimination of NPDES related fees and fines
• No property damage or clean-up costs, due to flooding
• Allows flushing of mains after main repairs to avoid contamination
• Controlled flow and reduced damage to distribution system - no water hammer, pipe/lining erosion
• Lowered labor costs due to smaller crew and reduced set-up time
• De-chlorination not required
• Seen as an environmentally friendly initiative
While there are systems on the market that can be compared to the NO-DES unit, the competing systems are only designed to remove sediment build-up inside pipes. The NO-DES unit is designed to remove sediment, as well as filter and chlorinate the water. Further, many of these systems use open fire hydrant flushing where water is flushed through a typical hydrant and into the street gutter. This practice results in the loss of stored water, increased customer complaints, and an increased risk of property damage due to flooding and water hammer (water main breaks). With these associated issues, the comparable systems do not meet the needs of the Water Division or the community.
Through extensive internet research and reaching out to industry leaders, both the Water Division and the Fleet Management Division have determined the NO-DES patented water main flushing system is only available through NO-DES, Inc., and it is the sole source manufacturer and supplier of this product.
Staff recommends the City to suspend the competitive bidding requirement in this instance and to authorize the purchasing manager to approve the purchase of the NO-DES patented water main flushing system and accompanying chassis under the sole source exception.
ENVIRONMENTAL FINDING
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the award of this contract does not qualify as a “project” for the purpose of CEQA.
LOCAL PREFERENCE
The water main flushing system is only available through NO-DES, Inc., and it is the sole source manufacturer and supplier of this product.
FISCAL IMPACT
The funding to cover the purchase cost of the NO-DES unit has been included in the FY17 budget under the operations of the Water Division.
Attachments:
Uniquely Qualified Memo
Sole Source Statement
Resolution Approving Exception to Formal Bidding